"The stampede into bonds... may be intensifying. A recent survey of financial advisers by Charles Schwab found that 77% planned....Yet bond prices are near all-time highs and future returns are likely to shrink.
Financial advisers contend that one of their most important functions is encouraging clients to 'rebalance,' or sell whatever has gone up and buy whatever has gone down.
The TD Ameritrade and Schwab numbers suggest, however, that financial advisers have been unbalancing instead of rebalancing their clients' accounts. "
Sunday, October 31, 2010
The Intelligent Investor: Why Your Adviser Is Scared to Set You Straight - WSJ.com
The Intelligent Investor: Why Your Adviser Is Scared to Set You Straight - WSJ.com:
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You may be interested in this recent paper too, written by me and Gregg S. Fisher:
http://ssrn.com/abstract=1675187
The idea there is that one added value of advisors is keeping individuals from trading too much.
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